Is it Possible to Use Your DVC Membership to Pay Your DVC Dues?
There is a strategy some Disney Vacation Club (DVC) Members have used to successfully use their Membership to not only vacation on, but also cover the cost of their annual dues. The strategy is “doubling up” on points.
How does this work?
Let’s say, for example, you determine your family needs 150 points to vacation each year. Rather than buying 150 points, buy 300 points, and rent the other 150 points your family is not using each year through a company such as DVC Rental Store. DVC Rental Store pays $13.00 – $14.00/pt. Consider Saratoga Springs for example. If the annual dues at Saratoga Springs are $5.60/pt. and you are receiving $13/pt. in rental revenue, then the renting of the 150 points can cover the dues for the entire 300 point Membership:
- 150 points x $13/pt. from renting = $1,950 rental revenue
- 300 points x $5.60/pt. for annual dues = $1,680 total annual dues
In this example, you can see that by “doubling up” the points, the dues for the entire Membership can be covered by the rental income from just half of the Membership. It’s analogous to buying a duplex, living in one half and having a tenant rent the other half to cover the expenses for the entire duplex.
Moreover, historically, according to Paul Little, who owns and operates DVC Rental Store, the demand for people needing points to rent is almost always greater than the points available to be rented out. This bodes well for anyone considering a “doubling up” strategy to cover their dues.
Typically, resorts with lower dues will represent better opportunities for a “doubling up” strategy. Also, a few resorts, typically have a higher rental payout per point. Below is a chart ranking the best resorts to use for a rental strategy based on a ratio of rental income to annual dues per point:
|Resort||*Rental Income Per Point||Annual Dues Per Point||Ratio||** Avg. Price Per Point|
|Bay Lake Tower||$14||$5.62||2.49||$116|
|WL: Boulder Ridge||$14||$6.54||2.14||$86|
|Old Key West||$13||$6.41||2.03||$77|
- * Rental income assuming an 11 month booking window is provided
- ** Avg. price per point is provided from disneydvcresale.com
It is important to note that some resorts costs more to purchase than others, and by doubling up your points, there is more money tied-up. The chart above does show an average price per point for all DVC resorts when considering resale. Additionally, like any rental income, earned monies from renting DVC points is taxable. Regardless, “doubling up” on points may be a great opportunity for some, when considering you could vacation on a DVC Membership and potentially have your dues covered by renting half of your points.